Bybit to Offer Equity Trading
The move into traditional markets follows a $1.4 billion security breach, signalling a new growth phase.
Cryptocurrency exchange Bybit is preparing to offer trading in US equities and commodities on its platform.
CEO Ben Zhou announced on May 3 that the platform will enable direct trading of
US Stocks: Major companies including Apple, Microsoft, and MicroStrategy
Commodities: Gold and crude oil
Market Indices: S&P 500, Nasdaq Composite and so on
Bybit is not alone in this strategy.
Just weeks earlier, Kraken announced its partnership with Alpaca to offer commission-free trading on over 11,000 US-listed stocks and ETFs. This parallel move indicates a broader industry trend where cryptocurrency exchanges are evolving into full-service trading platforms.
What stands out most in Bybit's announcement is the extraordinary leverage being offered—up to 500x on selected instruments. This leverage ratio exceeds what's typically available in regulated traditional markets and appears targeted at high-risk traders seeking substantial returns.
Bybit's expansion follows a significant setback earlier this year when the exchange experienced about $1.4 billion security breach.
Read: Crypto's Biggest Heist Rocks Bybit 🦹🏻♂️
The new trading options will be integrated into Bybit's existing infrastructure, primarily through its MetaTrader 5 (MT5) platform, which is already being used for leveraged gold trading. This approach allows for a seamless transition for existing users while providing the technical framework needed for traditional asset trading.
Gracy Chen, CEO of Bitget, observed, both crypto exchanges and traditional finance players are actively seeking to bridge the gap between their respective sectors. This convergence is driven by investor demand for flexibility across both traditional and digital assets.
Zhou explicitly linked the timing of Bybit's diversification to the current US administration's favourable stance toward digital assets and financial innovation.
Despite the more favourable US regulatory environment for crypto, significant challenges remain.
Bybit has faced varying regulatory hurdles across different jurisdictions, recently being removed from France's AMF blacklist while actively working toward securing a Markets in Crypto-Assets Regulation (MiCA) license for European operations.
"The line between traditional asset classes and crypto will begin to blur, and crypto will be part of an asset allocation strategy," Owen Lau, an analyst with Oppenheimer & Co., noted.
The success of this expansion will ultimately depend on Bybit's ability to navigate complex regulatory requirements while maintaining security and effectively serving the needs of both crypto enthusiasts and traditional investors.